Australia's national dwelling prices fell 0.9% in August, marking the fifth straight month of declines, while the eight-capital city index fell 1.1% and is now 4.6% below its peak, according to a Thursday report by National Australia Bank (ASX:NAB).
The bank said Sydney and Melbourne continue to lead declines, with Sydney prices falling 1.4% for the month to sit 7.1% below their recent peak, while Melbourne prices declined 1.1% to be 6.5% below their respective peak, with price declines also broadening across Brisbane, Perth and Adelaide.
NAB believes that housing turnover is clearly slowing, with the median days on market rising to 38, the highest level since October 2022, while the value of new housing loan commitments fell 5.2% quarter on quarter in the second quarter, led by an over 10% decline in investor lending, the report added.
NAB forecasts dwelling prices across the combined capitals to fall 5% over the year, with peak-to-trough declines of about 10% in Sydney and Melbourne and 2% to 4% in the mid-sized capitals, though the bank noted downside risk to its forecasts given its revised expectation for further Reserve Bank of Australia rate increases, it added.